Overview

• India is increasingly positioned as a 'connector country' in technology, digital services, and pharmaceuticals, leveraging global trade realignments.
• Consumer price inflation dropped to 3.2% in April 2025, the lowest since July 2019, with further alignment to RBI's 2025-26 target expected.
• The Reserve Bank of India anticipates additional policy rate cuts as inflationary pressures ease and economic indicators remain robust.
• High-frequency data shows continued momentum in industrial and services sectors, alongside favorable agricultural forecasts bolstered by a strong rabi harvest.
• The IMF projects India to remain the fastest-growing major economy in 2025 and surpass Japan to become the world's fourth-largest economy this year.